You may be asking yourself, what does Sam mean? Let me explain, if we take the amount of money you spend on lead generation, so for example Google AdWords, Facebook, Networking, Referral programmes, advertising etc and divide it by the number of new customers you get, we can calculate how much it costs us to get a new customer. This is also known as the acquisition cost.
Once we know how much it costs us we can start investigating ways to lower our acquisition cost.
This week -
1) Work out how much it costs you to buy a new customer based on all your marketing.
2) Once you know this we can now make better informed decisions on marketing and start taking steps to lower the acquisition costs.